WisdomTree launched an Ethereum-based platform for tokenized real-world assets (RWA) called WisdomTree Connect on September 18.
The goal of the platform is to allow customers to interact with any token issued by WisdomTree on different blockchains.
WisdomTree Connect enables businesses to access on-chain yield-generating products with blockchain-integrated recordkeeping. Businesses will receive digital records of WisdomTree digital funds in their wallets. Tokens can be self-hosted or held with third-party custodians.
Will Peck, head of digital assets at WisdomTree, said growing interest in tokenized real assets motivated the creation of WisdomTree Connect.
He added that this opens up additional business-to-business (B2B) and business-to-consumer (B2B2C) opportunities for WisdomTree to provide on-chain businesses with access to digital funds without leaving the ecosystem.
The announcement explains that the platform initially supports web portal and API access, with future plans to explore interactions with decentralized applications (dApps). Institutional users can purchase or exchange cryptocurrencies with US dollars or USD Coin (USDC).
WisdomTree Connect complements the company’s direct retail application, WisdomTree Prime, offering digital asset solutions to the entire customer spectrum.
WisdomTree’s Possible Migration to Ethereum
According to RWA.xyz, the total market capitalization of tokenized U.S. Treasuries exceeds $2.2 billion. WisdomTree currently offers seven different tokenized products, representing $12.2 million of that value. This leaves the company outside the top 10 issuers in terms of total tokenized.
The asset manager’s products range from short- and long-term Treasuries, with cash maturing in 7 to 10 years.
Notably, six of the seven products offered by WisdomTree are issued on the Stellar blockchain, while the tokens are created by WisdomTree Connect using Ethereum.
While the announcement reveals plans to add support for additional blockchains in the future, it does not specify whether WisdomTree’s current products will be migrated to Ethereum.
Stellar is currently the second-largest blockchain infrastructure for tokenizing U.S. Treasuries, with $426.5 million worth of Treasuries deployed as tokens, largely driven by Franklin Templeton’s FOBXX tokenized fund.
Meanwhile, Ethereum holds over $1.6 billion in digital representations of U.S. Treasuries, while BlackRock leads the way with over $521 million in tokenized stocks for its BUIDL fund.
So, given WisdomTree’s plans to integrate its tokens with dApps, a migration to Ethereum would be appropriate, as its decentralized ecosystem is the largest in terms of total value locked.
